Bank Nifty likely to see a Dead Cat Bounce

Bank Nifty opened above its 5 Day High EMA (25671 approx) today . The Index corrected sharply by 430 points and closed above the 5 Day low EMA (25300 approx)

Hourly Technicals:

In the Hourly Chart, Bank Nifty has closed below its 5 Hour Low EMA of (25330 approx).The Index is likely to face immediate resistance around the 5 Hourly Moving Average (25362 approx). Bank Nifty will find its next support around the 100 Hourly Moving Average ( 25019 approx) .

Hourly RSI stands close to the lower end of the normal range while the CCI is indicating major sell sentiments. ADX is indicating that Bank Nifty might not undergo major volatility yet.

Figure: Bank Nifty Hourly Chart

Daily Technicals:

The daily chart indicates that Bank Nifty has closed marginally above the 5 day low EMA of (25300 approx). The Index will face immediate resistance around the 5 DMA (25488 approx). On the downside however, if Bank Nifty breaks and closes below its 5 day low EMA (25278 approx), it could find support at its 13 DMA (24974 approx).

The daily RSI indicator has closed midway between the normal range.The CCI indicator however is indicating a turn around in the Index.The ADX indicates that momentum might be picking up .

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